Security instruments that have zones or snippets coated with fluorescent invisible inks are known to the prior art. Each zone or snippet will generally include an identification code, such as a binary code, to identify the individual snippets. Good examples of this technology can be understood by referring to the Edwin Greene patents; namely 4,634,184 dated Jan. 6, 1987; 4,724,309 dated Feb. 9, 1988; 4,588,211 and 5,418,853 of May 23, 1995.
With the advent of personal computers, sophisticated printers and scanners, the instances of bank fraud have increased dramatically. Relatively inexpensive computers with common printers can duplicate checks with great accuracy. It is a primary objective of this invention to confound those who would counterfeit checks and or who would alter or manufacture checks with such computer printer machines.
The technique of having identifiable snippets coated with invisible ultra violet ink or infrared ink has many important operational and security features. This invention provides security features which can be, but are not necessarily, employed with the Greene type checks.
In the art of bank fraud prevention, a Positive Pay service is an effective detection strategy. In this system, commercial customers send computer generated account files containing the MICR line data and the amounts of issued checks to their bank. When these checks are presented, the bank compares them with the data in the account files. The bank notifies the customers of any mismatches and the customer then tells the bank which checks to pay. As one can see, this system although effective, requires a significant effort from the bank and their customers.
Teller Line Positive Pay targets bad checks that are presented at the teller's windows. When tellers receive checks drawn on the customers account, they are compared against a customer's list of pre-authorized checks. The counterfeiter is caught before the check is cashed.
Also, there are devices and software where pattern recognition algorithms are used at the teller stations and/or in the check processing operations. For instance, software is available that will look for exceptional conditions such as duplicate serial numbers, out of range serial numbers or high dollar amounts when such amounts are not expected. Other technologies such as fingerprinting, iris scans and the like have been advanced but have met with limited success.
Many companies that issue hundreds or thousands of checks each month oftentimes utilize the aforementioned Positive Pay system. In these high volume systems, commercial customers send computer data containing MICR line data and the amount of all checks issued to their banks. The bank's computers automatically compare the checks with the data before payment.